U.S-based GlobalWafers to provide wafers for Apple's production from their American facilities
GlobalWafers Announces Major Investment in Texas, Boosting US Semiconductor Industry
In a significant move for the US semiconductor industry, GlobalWafers, the world's largest silicon wafer manufacturer, has announced a new investment of US$4 billion in advanced 300mm wafer production in Sherman, Texas. This investment, initially announced in May, is in partnership with Apple, America's most significant end-user of silicon.
The new facilities mark a powerful market signal, indicating a resurgence of the entire semiconductor supply chain within the US. The partnership with Apple suggests that this trend is here to stay, with the industry increasingly returning to American shores.
The first of these new plants is scheduled to begin high-volume production in the second half of this year. GlobalWafers' decision to invest in Texas also makes them the only manufacturer of advanced 300mm wafers to participate in US President Donald Trump's "CHIPS for America" program.
The investment in Texas is eligible for an advanced manufacturing investment tax credit of up to 35 percent under Section 48D of the Inflation Reduction Act. This tax credit applies to new manufacturing facilities such as wafer plants, investing in eligible advanced manufacturing equipment.
In addition, the new facilities will be eligible for the Advanced Manufacturing Production Credit under Section 45X. This credit supports manufacturers of eligible components by providing a credit based on the sale of components to unrelated parties. For wafer manufacturing, this could cover eligible semiconductor production components made in these new Texas facilities.
The credit rate for eligible advanced manufacturing investment property is increased to 35% after 2025, and the Section 45X production credit phases out based on the sales date of eligible components, with a full 100% credit for components sold before January 1, 2030. However, there are domestic content requirements that apply effective for sales after December 31, 2026. For vertically integrated producers, at least 65% of the direct material costs of a secondary (assembled) component must be attributable to primary components mined, produced, or manufactured in the US.
There are also important restrictions related to foreign entities. Taxpayers receiving material assistance from or controlled by prohibited foreign entities are ineligible for the 45X credit starting in taxable years after July 4, 2025.
These incentives reflect recent amendments to the Inflation Reduction Act and the “One Big Beautiful Bill” Act passed in 2025, aimed at promoting domestic advanced manufacturing, including critical semiconductor supply chains.
Following the announcement, GlobalWafers' shares surged 9.97 percent, reflecting investor confidence in the company's strategic move. Moreover, GlobalWafers earlier this week stated they would consider bringing forward the next phase of capacity expansion in the US based on the demand profile of its US customers.
With this investment, GlobalWafers is bringing its total investment in the US to US$7.5 billion, further solidifying its position as a key player in the US semiconductor industry. This development is expected to create thousands of jobs in Texas and boost the local economy.
The significant investment by GlobalWafers in Texas' advanced 300mm wafer production aligns with the expansion of their business in the finance sector, as they secure a tax credit under Section 48D of the Inflation Reduction Act. This investment also signals a growing trend of technology companies, like Apple, returning their semiconductor operations to the US.
